MANILA, Philippines — A day after breaking the 54-to-dollar mark, the Philippine peso saw yet another loss on Tuesday, closing at 54.265, based on the Bank Association of the Philippines’ (BAP) foreign exchange summary.
This puts the local currency at its weakest in almost four years (three years and eight months, to be exact) since Oct. 15, 2018. This record-breaking high also came in the same month the Philippine peso broke the 53:$1 mark on June 10.
If it continues to weaken, the Philippine peso is set to breach the next resistance level, P54.325, which was last posted on September 26, 2018.
The Philippine peso’s weak currency could make imports more expensive for the country — gas prices and major food items like bread will continue to increase, especially as the country continues to grapple with the rising costs of oil amid the Russian invasion of Ukraine.
In an April 28 report, London-based think tank Capital Economics warned that expensive imports, like oil, would weaken the peso this year and add to the Philippines’ slow transition to economic recovery.
READ: UK think tank: Peso to fall to 54 per dollar this year
It predicted the Philippine peso to become one of the worst-performing Asian currencies from 2022 to 2024; depreciating to 54:$1 in 2022 and further weakening to 55 against by 2023 and 2024.
The Banko Sentral ng Pilipinas (BSP), meanwhile, told INQUIRER.net that the strength of the Philippine peso, or its weakening, in the global exchange rate or compared to the greenback will soon be discussed during the Monetary Policy Stance press briefing on Thursday.
RELATED STORIES
Trade gap may weaken peso to 54:$1 this quarter